Where are Nike’s Factories Located in Vietnam?

Vietnam is a sportswear and sports equipment manufacturing powerhouse of which Nike has been a key player. Here’s where Nike’s factories in Vietnam are located and why they’re there.

At the World Cup last year, Nike was responsible for supplying the kits of Qatar, Poland, Saudi Arabia, Brazil, France, Croatia, England, the Netherlands, South Korea, Canada, Portugal, the USA, and Australia.

As one of the biggest, most well known brands in the world, Nike is well and truly embedded in the fabric of international sport. This, however, would not be possible without the huge manufacturing operations Nike has developed in Southeast Asia. In particular, Vietnam has become an essential component of Nike supply lines.

In fact, 51 percent of Nike’s footwear in 2021 was produced in the Southeast Asian manufacturing powerhouse alone.

And this number is increasing – in 2021 Nike had just 138 suppliers in Vietnam. By November of 2022, however, that number had increased to 155.

So what products is Nike manufacturing in Vietnam? Where is it having them manufactured? And why does Nike keep choosing Vietnam?

What does Nike manufacture in Vietnam?

All three pillars of Nike’s product range are produced in Vietnam: footwear, apparel, and equipment. This includes both Converse and Nike branded products.

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Currently, Nike’s biggest investment in Vietnam is in apparel with 71 factories producing garments for the sporting giant. These factories are mostly located in Vietnam’s south, though there are a handful scattered around the rest of the country as well.

There are also 13 factories that produce sporting equipment for Nike with 11 in the south and two in Vietnam’s north.

Vietnam is a key manufacturer of Nike footwear too. It has 13 factories around the country making everything from running shoes to sneakers.

How many Nike factories are there in Vietnam?

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Nike factories in Vietnam by province, region (November 2022)

Source: Nike Manufacturing Map

Why are Nike’s contract factories in Southern Vietnam?

Infrastructure in southern Vietnam

Ho Chi Minh City is home to Vietnam’s biggest port. As of 2019, the Port of Saigon was the 26th biggest container port in the world and the fifth biggest in the ASEAN region after the Port of Singapore, Malaysia’s Port Klang and Tanjung Pelepas, and Thailand’s Laem Chabang.

As a result, ports in HCMC are responsible for around 67 percent of Vietnam’s seaport throughput.

Around 80 kilometers to the south of HCMC there is also the Cai Mep-Thi Vai Port. The Cai Mep-Thi Vai Port is a deep water port, which allows for bigger ships to transport goods into and out of Vietnam. This can significantly reduce shipping costs for manufacturers. It is also conveniently located close to Dong Nai and Binh Duong which account for the two highest numbers of Nike factories in Vietnam.

See also: Port Infrastructure in Vietnam 3 Regional Hubs for Importers and Exporters

Labor in southern Vietnam

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Southern Vietnam has been a textile and garment hub for decades and now boasts a relatively high-skilled workforce in garment manufacturing. This low-cost labor can produce high-value when managed and utilized correctly.

Ho Chi Minh City, Vietnam’s biggest city, is also located in the south. This is Vietnam’s biggest population center and has the full gamut of amenities of any big city in the world. Workers from Ho Chi Minh City can have a high quality of life within its borders while also commuting to factories outside of the metropolis in the surrounding provinces – it’s common for many companies to bus their employees into and out of the city.

See also: Salary and Wages in Vietnam

Vietnam-Nike ongoing relationship

Over almost two decades, Nike and Vietnam have become inextricably linked. Vietnam is now a key manufacturing hub for Nike goods with over 530,000 Vietnamese employed by factories supplying the sportswear giant.

It has also provided training and experience for countless thousands of Vietnamese workers. This has created an apparel manufacturing workforce that is well-familiar with the industry and the work and this may pay dividends for foreign brands in the garment and textile industry that wish to start manufacturing in Southeast Asia.

At the same time, Nike has been able to lower production costs and provide value for its consumer base.

This mutually beneficial relationship, in recent years, has moved from strength to strength. As these two entities continue to grow together, that relationship can only grow stronger.

For more information about garment and textile manufacturing in Vietnam and the benefits Vietnam may provide, contact the business intelligence team at Dezan Shira and Associates.

A complete list of Nike suppliers in Vietnam as of November 2022

Source: Nike Manufacturing Map

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